California's 11th-hour, $11 million campaign finance uproar

11/5/12 1:00 PM EST

California has been in the throes of a major campaign finance fight for some time now, as the state's Fair Political Practices Commission has sought to uncover the source of an $11 million out-of-state contribution to a group, Americans for Responsible Leadership, that opposes Jerry Brown's Prop 30 and supports Prop 32, which would in effect limit political activity by unions.

Today, after a ruling by the California Supreme Court, ARL discloses that the donation came through two major national outside-spending groups: Americans for Job Security and the Center to Protect Patients' Rights. The Sacramento Bee:

The Fair Political Practices Commission said in a release this morning that Americans for Responsible Leadership "sent a letter declaring itself to be the intermediary and not the true source of the contribution."

"Under California law, the failure to disclose this initially was campaign money laundering," FPPC wrote. "At $11 million, this is the largest contribution ever disclosed as campaign money laundering in California history."

Money laundering, of course, is not something you are allowed to do. The most immediate and local impact of this story could be a blow to ARL's positions on Prop 30 and 32. But over the longer run there could potentially be broader consequences for the web of operatives and donors tied into ARL's spending, depending on how California's attorney general -- Kamala Harris, a prominent Obama surrogate -- decides to proceed.